tv CNN Newsroom CNN August 9, 2011 1:00pm-3:00pm EDT
these kids coming out of college, for example, you know, if you're a talented kid, you can really find an unbelievable position. the question is whether or not, how it translates for the rest of the people. >> thank you very much. "cnn newsroom" continues right now with randi kaye. thank you, suzanne. if we could forget what happened yesterday, today would look like a pretty great day on wall street. instead, this bounce in the dow is a relief. we're now up, looking at the big board there, about 170 points but it still leaves us more than 400 points below where we started the week. the plunge of course attributed to the downgrade of u.s. government credit by standard & poor's. yes, you got it. which attributes that decision in large part to the grid lock in washington, the inability of president obama and congressional republicans, yes, there we are right there, to get a meaningful handle on the deficits and the debt. now comes of course the federal reserve. we have ben bernanke here, which
has used every tool in its box to keep credit flowing and interest rates low in the wake of the great recession. at 2:15 eastern, a little over an hour from now, the fed will tell us what if anything it plans to do in the wake of the downgrade, the debt snafu, the european debt snafu and the global stock freak-outs. in the meantime, i want to bring in richard quest, just outside the new york stock exchange, and christine romans in our new york studios. i would like to start with you. we just mentioned that the fed is going to speak here or at least issue a statement at about 2:15 today. what if anything can the fed do to help the situation that we're in right now? >> that's what we all want to know. the fed has kept interest rates at basically 0% since december 2008. the fed twice has embarked on big huge stimulus measures, buying back bonds, buying assets. that's about $2.9 trillion,
keeping credit and money flowing best they can into the economy. what can they do next beyond, say, what the fed says about being on guard and on alert for anything weakening in the economy and being ready to step in. how would they step in, when would they step in, what does the fed think about unemployment and inflation, those are the two things that the fed has a mandate to keep in check or keep under control. so that's what everyone wants to know. also, one thing i would like to point out is that the fed, this meeting was scheduled way before this latest period of unrest in the markets. a lot of people are saying the fed needs to step in and say something to soothe the markets. but others are saying the fed is too aggressive in its statement, it could spark concern in the markets that the fed is trying to target stock markets. so you never know how to grade how the fed statement's going to play out in the markets beforehand. >> christine, stay there. i will get back to you in a second. i want to bring in richard quest. richard, the markets in europe also bouncing back today. so is that it?
is it over? are we in safe territory once again? >> reporter: well, if you accept that yesterday's fall was a fear-based fall, a waterfall if you like, that wasn't based on any economic fundamentals, then clearly the market will start to drift back up again. it will regain some of the losses. but it won't regain all of them. it will keep trying to test those lows to see actually where the floor in the market currently is. i would expect that's what's going to happen. so the market comes back up again, but the hole is still open and it will keep working out, how much is going to drain down over the next few days and few weeks. now, what could change the entire scenario, new economic data. everybody's going to be looking at the numbers. keep your eye on the numbers, because what you're looking for is a weakness in the economy that shows these share prices
are not justified on the market. one thing i will take issue with you on, randi, if i may, you said the fed's running out of things that it can do. i suspect ben bernanke would disagree with you. he would say that he's always got a bit more, if he wanted to, he can always fiddle around and move the money around if he had to and most important of all, he is the ultimate printer of money. he can flood wall street from here to kingdom come with money up the wazoo if necessary to ensure the liquidity of the markets remain solid. >> i will give you that. let me get back to christine. yesterday, a lot of folks as we watched the market plunge certainly afraid to even look at our 401(k). but put this in perspective for us, if you can. >> okay. so the dow is now up, what, 165 points. that means we have only got 1600 points more to go to get back to where we were just july 21st.
that's depressing. let's put it into other perspective. when you look at percentage-wise in the dow jones industrial average, down 634 points yesterday but percentage wise, that's 5%. that happens kind of often. you get big moves like that. it's not unprecedented. in fact, that's not even in the top 20 worst percentage drops in history. when you think of that battle thursday 1987, black thursday, look, yesterday is not even on that list of terrible, terrible days for the dow. when you look back at 1987, that was a 22% drop. that still holds the record for the first one ever. we are not anywhere near anything like that. for the s&p 500, since i told you since let's just say for the summer, for the summer, the s&p 500 has corrected even more. it's down 16%, 17%, 18%, that is a big move in a short period of time and it hurts. let's step back and compare it with that awful march 2009, the
s&p is up 64%. so it's all a matter of perspective. it's been a huge rally since those terrible days in the financial crisis, and a lot of people were waiting saying oh, this market is prime for a big selloff and it happened vigorously and fast. now its fundamentals, i'm sure richard would agree, the market is telling us are we in a rut or recession, they trying to figure that out. they hope it's a rut. if it's a rut, there's not much to be happy about. that's why stocks are having a hard time. >> richard, what do you say? rut or recession? >> i'm on the fence at the moment. i'll tell you why. the rut leads to a recession. ultimately if you have enough rutting, you end up with a full recession. we're not there yet. the economic fundamentals don't justify it. christine talks about 1987. i was 25 on that day when the market crashed, that black monday. i remember it as if it was yesterday when the market suddenly dropped more than 100
points in the last seconds of trade. i have never seen fear like i saw then, even 2008 didn't come close to 1987. we're a long way off those sort of levels of worry. >> we weren't even born in 1987. we'll take your word for it. >> oh, i don't know about that but thank you. christine, what do you think investors hope the fed does do today? >> i think the investors hope for a very frank assessment of unemployment and the pace of the economic recovery, and they want to know that the fed stands ready to intervene if necessary to put more, as richard says, more into the system to flood wall street with dollars up the wazoo i think is what he said, but also not to frighten anyone into thinking that we are definitely headed for recession. they would prefer it's a rut, not a recession, and that the fed stands ready to do anything
to ameliorate it. >> thank you both. we will keep an eye on wall street. don't you worry. another story we're following this hour. the american troops killed in the deadliest day of the afghan war have come home. the remains of the 30 troops including 22 navy s.e.a.l.s arrived at dover air force base in delaware this morning. some are seen in these pictures here. families of the victims traveled to dover for the somber transfer ceremony. president obama, defense secretary leon panetta and joint chiefs of staff chairman admiral mike mullen were there. also included, the remains of seven afghan troops and a civilian interpreter. the remains will be returned to afghanistan once identifications can be made. all were killed, you may recall, when their helicopter crashed in central afghanistan on saturday. we want to tell you more about one of the victims and his 10-year-old son. brian nichols was a u.s. army pilot from kansas who flew
helicopters. when his son braden learned about his father's death, he couldn't understand why the navy s.e.a.l.s who were also killed were getting so much media attention so he sent us this photo in an ireport and this request. quote, my father was one of the 30 u.s. soldiers killed in afghanistan with the s.e.a.l.s rescue mission. my father was the pilot of the chinook. i have seen other pictures of victims from this deadly mission and wish you would include a picture of my father. he is the farthest to the left. we all want to thank you for sending the picture of your dad. we are very sorry for your loss. his aunt, sue keller, says braden was his father's only son and that they were very close. he was counting the days, in fact, until his dad came home. there were just nine left before brian nichols was to fly home to kansas city, nine days left for a two-week leave. it only took 30 minutes for a texas jury to decide the fate of warren jeffs after the half hour deliberation, the flds
self-proclaimed prophet was sentenced to life in prison, plus a $10,000 fine. he was found guilty on one count of aggravated sexual assault and another count of sexual assault, both involving underaged girls. his sentence was the maximum possible. london police say the violence on the streets is the worst they have ever seen. now the british prime minister is promising to put thousands more officers on the streets. will that end the crisis? we'll take you to london live next. every day, all around the world, energy is being produced to power our lives. while energy developement comes with some risk,
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saturday night. a 26-year-old man who was found with a gunshot wound to the head in croydon, in south london, on monday night has died, according to police. now some 16,000 police officers are on the streets of london as tensions have now turned deadly between groups of young people and police. police say the riots in london monday night were the worst in current memory. for the third straight night, people set buildings on fire, looted stores and attacked police with bottles and fireworks. hundreds have been arrested. this all started last week, after 29-year-old mark duggan was shot and killed by london police. violence first broke out over the weekend in the district of tottenham in north london and has now spread to three major british cities. we are joined now from london. some are saying this rioting is all because of high unemployment and benefit cuts, but then there are the others who are saying it could be racially motivated because the man police killed last week was black. what are you hearing in terms of race being behind this?
>> reporter: i'm hearing a lot of different things. i think it's very complicated. there are a lot of different factors to this. clearly what we know is that the trigger was the killing by duggan of local police. some news on that just came out. basically they found there was a firearm on the scene that did not belong to police, but it didn't fire any bullets. originally police said there was an exchange of gunfire in which he was killed. that's now being called into question. it just goes to show that the family has -- was very angry about his death but they held a very peaceful protest. it then degenerated into a riot. now, that's what happened on saturday night. what people are asking is then how did it become riots on sunday night and then a full-blown looting, sporadic looting and rioting on monday night. so i don't think there's any one particular answer. we do know the shooting triggered it but it does seem perhaps the recession is hitting
people very hard. benefit cuts in particular are being felt very sharply, cutting a lot of the youth clubs and other activities that kept a lot of teenagers off the streets. a lot of these unfortunately packs of teens seem to have basically jumped in with the looting, vandalizing local shops like this grocery store behind me that went up in flames last night, and it seems to be a whole host of different factors and just generally, a venting of anger by some of these angry youths. >> some are calling this the worst violent outbreak since the race riots in 1981. can they really be compared? >> reporter: i think they can definitely be compared. this is exactly what people are saying that it reminds them. i just actually spoke to a former police officer who was in tottenham during some of those disturbances, those riots in the '80s. he said it's like deja vu. he remembers seeing some of these exact same scenes, running battles between some of those
teenagers at the time and police. he says it's a lot of the same thing. again, some of the same situations that we were seeing in terms of context, recession, economically speaking, people were really doing hard, unemployment was high, benefits being cut across the board. we're seeing all of that being repeated again and that might be one reason we're seeing the violence again. >> what about this increased police presence? will that help the situation at all, do you think? >> reporter: i think it's probably going to help certainly in certain areas. a lot of people i have been speaking to both in the north and here now in the west say last night, the police were just stretched too thin. there were maybe 30 policemen and 150 of these looters and rioters. so having more police will help but at this point, it's so widespread, it's much more difficult to get it under control. a lot of people are asking if there are going to be more forceful measures in place, water cannons, tear gas, maybe a curfew in some areas. those things have not been
announced yet. but if things don't get under control tonight, you can guarantee there will be demands for these things tomorrow. >> from the looks of it, even if they did put a curfew in place, who knows if it would work. thank you, atika. are they the new bonnie and clyde? the fbi is in hot pursuit of a sister and two brothers. they are considered well armed and very dangerous. [ male announcer ] you know there are germs on every surface in your mouth. but did you know those same germs can build up and form a resilient layer called biofilm? biofilm germs are strong enough to survive daily brushing. thankfully, there's listerine® antiseptic. its triple-action formula goes deep to penetrate biofilm, kill germs and protect your mouth for up to 12 hours.
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their 20s, are wanted for armed robbery and attempted murder. police say they robbed a bank in georgia with an ak-47 assault rifle, then opened fire on a police car in florida. the officer was unhurt but authorities are worried. >> you know, these people, they are extremely dangerous and street-smart. they know what they're doing. the biggest thing we're afraid of right now is they have three options. one is that we hope they turn themselves in. that is what -- that is what we hope ends this. the second thing is right now, they did the bank robbery, so they got a little bit of money but we know they will need some more money to survive. right now, we think they may go out and commit another felony. the third thing is, they may end this in a battle with law enforcement but we have a lot of resources and i promise, we will win that battle. >> all three siblings have criminal records. ryan has 14 felony arrests since 2007 and recently was sentenced to ten years probation for sending harmful information to a minor. after nearly 29 hours in the
water endurance swimmer diana nyad abandoned her attempt to make history today. the 61-year-old arrived in key west, florida aboard a boat this morning after asthma and shoulder pain forced her to call it quits about halfway through the 103-mile swim from cuba to florida. >> it was about midnight last night, you know, they always use that phrase mind over matter, and this sport proves it. you push beyond what the human limit is all the time, but last night at midnight, i was trembling, the 11 hours of asthma had taken so much from my body that i was absolutely spent, and when i found out it would be not only to swim at midnight through the rest of the night, through this entire day, through this entire night coming up, i just knew that it wasn't mind over matter anymore. i was absolutely spent. >> that was nyad speaking with my colleague, suzanne malveaux, earlier today. despite her disappointment, nyad said she does not see herself
attempting the swim again. for much more on her story, tune in to sanjay gupta's hour-long special next month, saturday, september 17th at 8:00 eastern right here on cnn. tiger woods is back on the prowl, roaming the golf course once again but it sounds like it's his former caddy who is doing most of the growling. i spend long hours with her checking her heart rate, administering her medication, and just making her comfortable. one night britta told me about a tradition in denmark, "when a person dies," she said, "someone must open the window so the soul can depart." i smiled and squeezed her hand. "not tonight, britta. not tonight." ♪ [ martin luther king jr. ] i still have a dream that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners
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tiger woods is ready to tee it up in golf's fourth and final major tournament of the year. the pga championship starts thursday on sister station tnt. tiger finished 37th in this past weekend's tournament, not a terrible outcome for someone who has been out with an injury for a few months. but really, more people may have been focused on tiger's former caddie. take a look here. that's steve williams on the right. he and his new boss had a really good weekend. adam scott won the bridgestone invitational. williams carried the bag, never even swung a club, but he called it his greatest win ever. >> it's the most satisfying win i've ever had.
no two ways about it. i'm not denying that. i mean, i was absolutely shocked that i got the boot, to be honest with you. i cared for the guy for 13 years, i was incredibly loyal to the guy and i got short-shrifted. very disappointed. >> that's coming from a guy at tiger's side when he won 13 majors. he was fired by woods last month. jim huber joins me now from the atlanta athletic club, site of this week's pga championship. you heard what steve williams said. did he sound a little bitter to you? >> just a little? you think? yeah, i think he was bitter. i think he's very upset at the way he was treated. i think that that particular divorce on tiger's part didn't go as anybody planned and so therefore, it was steve williams' chance to get him back. it was so rare to even see a caddie on camera. that just doesn't happen in these days and times.
caddies are treated like second class citizens basically. they bring up the rear. so to have steve williams go on camera with cbs immediately following the championship and sort of overshadow what accomplishment his man achieved was really rare and kind of bizarre and very disappointing, i think. >> it's almost like he didn't have much of a choice in a way. he was mobbed by reporters. but do you think he regrets coming out and speaking that way? >> well, we caught up with him a little while ago. he wouldn't go on camera but he did apologize. he said he was sorry if he offended anybody, that he was caught up in the emotion of the moment, and that he was happy for his man, adam scott, and looked forward to playing this week at the atlanta athletic club. period, paragraph, end of story hopefully. but it won't be the end of story. tiger woods has a press conference in the morning and we'll hear from him for the first time on this issue. it's not going to be finished. >> yeah. speaking of tiger, how's he looking these days? was he a bit rusty over the
weekend? >> he was rusty. rightfully so. he hadn't played in a good long time. his putter didn't work very well. his driver certainly didn't work. those two, you know, that is not a good sign for any golfer. when you come to a major championship like this with the rough as high as it is, the premium is on driving it in the middle of the fairway and hitting greens at the right position, where you don't have to three and four putt which is potential on these greens. so he's got to have both of those clubs in his bag working and coming in here, they're not. >> how is his attitude on the course these days? >> well, i think his attitude is sort of like let's see what i've got. i don't think he got as upset at himself as he might have in times past, because i don't think he was expecting a whole lot of what he had. i think that he knew he was going to be rusty. i think he knew he had to work on some things and the fact that the bridgestone was not a cut
tournament, in other words, he was guaranteed four days of practice, basically, it gave him a chance to work on it coming into this major. >> speaking of caddies, tiger has a new caddie who is like a high school buddy of his, right, with not much experience at all? >> brian bell is his name. yeah. old high school and college buddy. they get along pretty well but i think tiger does his own clubs, reads his own greens and i don't think he relies on brian for much more than just a pat on the back and to carry his bag. >> you think tiger will be the big story of the pga? >> well, i think he's a big story whenever he steps foot on a golf course. unfortunately, there are an awful lot of other players who should be getting the limelight here who will sort of be left in his dust as it always happens. there's an awful lot of good young players who have a great chance of winning this championship and i don't think tiger stands much of a chance,
to be honest with you. >> all right. you will have a prime seat, we know that, given your location today. jim huber, nice to see you. thank you. polygamous leader warren jeffs just found out how much time he will spend in jail after being convicted of sexual assault on a child. the sentence right after the break.
about half past the hour. let's take a look at some of the headlines and other news you may have missed. the dow is up right now, 167 points, as investors await possible action by the federal reserve. today's previously scheduled fed meeting takes on new urgency after yesterday's stock market plunge in the wake of the u.s. government's credit downgrade. we're expecting the announcement from the federal reserve at 2:15
eastern, just about 45 minutes from now. full coverage for you next hour. president obama was on hand today as the american troops killed in the deadliest day of the afghan war came home. the remains of the 30 troops including 22 navy s.e.a.l.s killed in a helicopter crash in afghanistan arrived at dover air force base in delaware earlier this morning. the president, defense secretary leon panetta and joint chiefs of staff chairman admiral mike mullen were there for the somber transfer ceremony along with the families of the fallen troops. it only took 30 minutes for a texas jury to decide the fate of warren jeffs, after the half hour deliberation, the flds self-proclaimed prophet was sentenced to life in prison plus a $10,000 fine. jeffs was found guilty on one count of aggravated sexual assault and another count of sexual assault, both involving underaged girls. his sentence was the maximum possible. one person has been killed and more than 500 have been arrested in three days of rioting in britain.
british prime minister david cameron says he's putting 16,000 officers on the streets of london tonight to deter protesters, arsonists and looters. the riots were sparked by the shooting death of a 29-year-old man in london last week. police say 44 police officers were injured just last night. pop singer gavin degraw was rushed to the hospital after being assaulted in new york city. the "post" says he had left just a group of friends when he was attacked. he suffered a broken nose and cuts on his face. sources say the attack did not appear to be a robbery. the mysterious orange goo that washed up on the shores of an alaskan village has finally been identified. the substance is a massive microscopic invertebrate eggs. more testing will be done to determine the species and to see
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president obama has authorized more u.s. aid for people starving in the horn of africa. the u.s. will spend an additional $105 million to pay for food, water, shelter, health and sanitation assistance. tens of thousands of people are huddled in a refugee camp in kenya. here's what it looks like from above. our chief medical correspondent, dr. sanjay gupta, is there. he has a report on the most vulnerable refugees in the camp, the children. >> reporter: these children are so resilient as well. the question remains how do you take care of so many people in the largest refugee camp in the world? it is not easy. we give you the idea through the story of a father's love for his
boys. what you're looking at may best be described as the most desperate place on earth. vulnerable children, sick with misery. >> one thing you can tell right away when you see the baby over there, take a look here, the baby's fontanel is sunken in. this is what happens with no food, no water, so dehydrated. >> reporter: basic, basic necessities. so hard to come by. dust and starvation nearly everywhere you look. this is also what happens when you're at the world's largest refugee camp. all these folks waiting to see one doctor over here. as you look at these images, consider this simple fact. these are the lucky ones, lucky because they made it here at all. this family of five made it out of somalia just yesterday.
came out here to the middle of the desert to give you a real idea of what this family went through. they walked for 30 days and 30 nights, primarily walking at night because it was cooler, carrying those three kids. sometimes carrying a kid, going back, getting another kid and then just doing this over and over again in the desert, 30 nights' worth. they crossed the border and then they get robbed. bandits take what little possessions they actually have. but the bandits didn't take this father's dream. and his drive to keep his kids alive. it's not going to be easy. this is another thing you see here quite a bit. looking very listless, just not very active at all but look at the breathing specifically. breathing with his abdomen, not so much with his chest. this is something that's very tiring for a baby. he also has whooping cough because the child was never vaccinated. he will need a hospital, oxygen,
antibiotics and yes, food and water. all of it may come too late. so painful to realize that every single one of his ailments could have been prevented. unfortunately, though, that hardly ever happens in the most desperate places on earth. the numbers continue to increase. they expect 2,000 people a day to still be coming into these camps. those numbers obviously increasing. there have been some signs of improvement. they have more resources in some of the camps, there is more of a structure to some of the camps as well. but the real key from talking to people on the ground is to be able to take some of these resources, put them directly in somalia around the people who need them the most to try and avoid them having to make these incredibly arduous treks. >> sanjay, thank you. you can see much more from sanjay gupta and anderson cooper reporting live from somalia tonight. watch "ac 360" at 8:00 p.m. eastern right here on cnn.
to find out how you can make a difference to help victims of the famine in east africa, visit our impact your world page. find that at cnn.com/impact. after the break, a life-saving food that's become an important weapon in the fight against famine. le physics... a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but if you have arthritis, staying active can be difficult. prescription celebrex can help relieve arthritis pain so your body can stay in motion. because just one 200mg celebrex a day can provide 24 hour relief for many with arthritis pain and inflammation. plus, in clinical studies, celebrex is proven to improve daily physical function so moving is easier. and celebrex is not a narcotic. when it comes to relieving your arthritis pain, you and your doctor need to balance the benefits with the risks. all prescription nsaids, like celebrex, ibuprofen, naproxen, and meloxicam have the same cardiovascular warning. they all may increase the chance of heart attack or stroke,
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i. it's made with sugar, vegetable fat and skimmed milk powder enriched with vitamins and minerals. it is playing a really important role in the horn of africa. omar is the director of nutriset which developed this. let's start with a little background, if you would. when was this first developed? >> it was actually initially developed in 1996. >> i ran through the ingredients. can you give us an idea of how nutritious this is and how it could help the starving people, especially the children? >> the fact that it uses a fat-based matrix to deliver the essential vitamins and minerals that these children that are suffering from severe acute malnutrition, it's proven to be life-saving as you very well
know, as you have stated, and it has a little bit above 90% recovery rate. i think the main aspect is what was happening before the integration of plumpy nut into humanitarian programs. we had high rates of infant mortality because the hospital was the only place where children could be treated, but because it was so far away or it cost so much to get to, because children had to be admitted as in-patients, all these served as disincentives for mothers or caregivers to present children so they offend presented the kids when the situation was too dire and irreversible. so we had lots of deaths for an unnecessary and preventible reason. >> besides obviously the nutritional value, what would you say are some of the other advantages to having plumpy nut there on the ground? >> plumpy nut enables instead of being treated in the hospital, those children without medical complications, those children that are only suffering from malnutrition, they can be
treated in their communities, so right away you're talking about increased coverage, enormous, the number of kids you can treat relative to what we were treating before is immense. >> it's easy to store. that was one of the things i was getting at. it's not something that has to be refrigerated because you are saer certainly not going to have that. >> in the hospital, a fortified milk needs to be mixed in a sterile environment. the plumpy nut uses the same formula but has a two-year shelf life, doesn't have to be heated or reconstituted before it's given to the child. it can be eaten directly. >> we said this is peanut based. is there any risk with all the talk of peanut allergies these days, or do the benefits outweigh any of that risk? >> this is a question that comes up quite often. the peanut allergy is not something, not a phenomenon that we have come across in the
developing world. i'm not saying it doesn't exist, but that's something that we typically find in europe, north america and other developed countries. it's not something we have seen at all. but we do get that question quite frequently. it is a good one. >> what does it taste like? just curious. >> it tastes like peanut butter cookie dough. it's probably the best example i can give you. the children do love it and so do the care givers because it's easy to administer and they know their children recover quite quickly from it. typically a child that is severely wasted takes plumpy nut for four to six weeks and is fully recovered. so the children that you're seeing on your broadcast there, they are literally running around smiling, just after four to six weeks of treatment on this type of product. >> we would certainly prefer to see those images over the ones we have been seeing on cnn for the last few weeks. what about the situations other than famine?
does this come in handy? >> absolutely. any situation where you have, you know, whether it's post-conflict or post-disaster, where you have civil strife, when you have refugees that are internally displaced persons, people don't have access to their fields, they can't harvest, there is food insecurity, all of these types of situations, you will typically find plumpy nut and other products. it's important to note that plumpy nut was the first of many in a similar range of products that was produced. the other ones are for less severe cases of malnutrition. but they are all spawned by the success of the product plumpy nut. >> omar taha, thank you so much for your time. great work with this plumpy nut. >> thank you for having me. >> you can give donations to make more plumpy nut available in east africa at globalgiving.org. for more about this, check out my facebook page. hate boiling over. a new killing caught on tape is
now bringing back troubling visions of mississippi's racially charged past. >> absolutely. there's no doubt they were looking for a black victim to assault. and even kill. >> we've got the disturbing details and the surveillance tape next. [ male announcer ] imagine all of your missed opportunities in one place. ♪ the front-row tickets you never bought. the lucrative investment you never made. the exotic vacation you never took. but there's one opportunity that's too good to miss. the lexus golden opportunity sales event, with exceptional values on the lexus rx. but only until september 6th. see your lexus dealer.
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trouble. prosecutors in mississippi say it was a deadly mix of hate and racism with one unsuspecting black man in the wrong place at the wrong time. cnn special investigations unit correspondent drew griff inhas the troubling story. >> he is just 18 years old. facing a possible double life sentence with a senseless murder of a man he never knew, darryl deadman is thin, short with stragly blond harrah cuesed of leading revellers on a mission to find and beat up anyone who is black. >> they discussed let's go get -- i mean, let's get honest, let's get a nigger, right? >> that's right. >> robert schuller smith says
the witness accounts tell a story of a crime that would seem to come out of mississippi's troubled past. on june 26th leaving an all night -- rank incounty mississippi in search of a black person to "mess with. >> out of hate? >> out of hate. that's exactly. no doubt in your mind motivated. hate motivated. let's kill a black guy crime. >> absolutely. they were looking for a black victim to assault. and even kill in this instance. >> they drove 16 miles on a freeway heading west at 5:00 a.m. that sunday morning, the teens in two vehicles took the ellis avenue off ramp leading to a predominantly black section of jackson. just as they were exiting an unsuspecting 49-year-old auto
worker named james craig anderson was standing by his car at this local motel and he was black. so literally, they found the first black person they could find and that person was in this parking lot? >> yes. this is the first business that you get to coming off of the highway and so that was the first person that apparently was out here and vulnerable. >> according to witness statements, at first james craig anderson was beaten and taunted with racial slurs. surveillance video shows white teens going back and forth in what prosecutors say was a continuous beating of the victim as one of the teens walks back to the cars after beating anderson, he pumps his fist in the air and shouts white power according to a security guard. then some of the teens got in the white suv and drove away, leaving anderson beaten and lying on the ground.
the man apparently wasn't through. he had two girls in his truck as he was leaving this parking lot. a big f 250 pickup truck. james craig anderson, the man who was beaten almost to a pulp, was stumbling down this curb. that's when police say darryl deadman hit the gas, jumped the curb and ran right over his victim. smashing him. what he didn't know was the entire episode was being caught on a surveillance camera on the corner of this hotel. this is what was caught on that tape. obtained exclusively by cnn. we warn you, it is disturbing. a video capturing what prosecutor robert schuller smith says is pure racial hatred and murder. >> and as drew said, we want to warn you that videotape that drew was talking about is
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now back to our story about a troubling attack in mississippi. the prosecutor in the case calls it a hate crime, pure and simple. white teens on the prowl for a black man, looking for blood and they got it. we have to warn you that the video you're about to see is disturbing. here's special investigation's correspondent drew griffin with the rest of that story. >> here you see james craig anderson in a hotel parking lot as he first comes into view in the lower right corner of the screen. this is after he was beaten according to law enforcement officials.
he staggers into the headlights of mr. deadman's truck, the truck backs up and surges forward suddenly, running right over the defenseless man. take a look again as the approaching headlights glow on anderson's shirt, then disappears under the truck. according to police, deadman, with two teenage girls as his passengers, drove to a local mcdonald's meeting up with the rest of the group. there, according to witnesses interviewed by police, he said i ran that -- over. >> it was not remorseful. he was laughing. laughing about the killing. >> later that morning, james craig anderson's family learned their 49-year-old brother and son died from what they thought was a hit and run. only later when witness statements were taken did they learn the real horror. winston thompson is the family's
attorney. >> as the facts developed, it went from a bad situation to much, much, much worse. that this could -- at that time they were being told this could have possibly been a racially motivated killing. >> now, it appears there is no doubt. still in shock. still in disbelief. >> calls to darryl deadman's attorney have gone unanswered. during a bond hearing, that attorney told the court he saw nothing to back up the racial allegations. that deadman's home a girl who answered the girl pretended not to know him. though the pickup truck he allegedly used as a weapon sticks out of the family's garage. police say they returned it after the vehicle was processed. a second 18-year-old has been charged with simple assault for his part in the beating. his attorney also did not return calls. neither teen has entered a plea. the other teens in the group have not been charged.
james craig anderson's family has decided to remain silent for now. trying to come to grips with a crime they thought was in mississippi's past. the murder of a man just because he was black. drew griff in, cnn, jackson, mississippi. >> and for more on this story and that video from the hotel surveillance camera, be sure to log on to our website at cnn.com. it is the top of the hour. just 15 minutes before the federal reserve speaks and the markets, well, nobody knows. so far we've seen a nice bounce on wall street. if you can forget yesterday's bloodbath, it looks nicer today. right now, the dow is up about 112 points right there. the fed, as you may know, has used every tool in its box to keep credit flowing and interest rates low in the wake of the great recession. now the whole world is watching to see, if anything, it will do in the wake of the u.s. credit
downgrade. the battle over debt and the persistently weak economy. christine romans is here to talk about this with us. what, if anything, christine, can the fed do now to help? >> reporter: the fed kept interest rates at zero to a quarter percent. basically zero since december 2008. the fed usually does at a meeting like this is announce whether it's going to lower or raise fed funds target. it really can't do that. what else could it do? twice now they've embarked on a stimulus buying back treasury securities, flooding money into the system and buying treasuries. that has been happening twice until it just wound down the second one wound down this summer. what could the fed do now? what will the feds say, randi about the health of the economy? will the fed hint that we could be moving closer to a double dip recession? that would unnerve the markets. will the feds say it stands ready to embark on new policy
tools to do as richard quest was saying last hour, fiddling with the system to make sure there's liquidity and money in the system and keep the credit flowing? that's what we're waiting to find out. it's typically about four paragraphs the federal reserve statement after a committee meeting. those four pair graphs will be scrutinized from the last time around, what it says new about the economy. the last time we heard from the fed was in june. quite frankly, randi, a lot has changed since then. we know that the first quarter was weaker than we thought. the second quarter grew 1.3%. what will the fed do? that's what everyone wants to know. >> that's in about 13 minutes or so from now. christine, i also want to ask you, for a little perspective here. a lot of folks yesterday watched the markets thank. watched their retirement accounts basically disappear. can you put this in perspective for us? is it as bad as it looks. >> rrt the stock part of it
declined by 5.5% or 6% if you think about the s&p 500. when you look at the s&p, most likely what your stock part of your portfolio, it's down 18% in a couple months. it's been a rough summer. there's the s&p right now. gosh, you know, that's from monday, it was a tough day with pretty consistent selling throughout the day. let's put it in perspective. you are still well above where we were in march 2009. you're 64% above where you were in march 2009. no one says this is a 2008 redux. it's a different situation in the economy. the economy is more healthy than it was then. you know, stock prices yesterday, not even in the top 20 percentagewise of declines. we have wild selloffs. it's here, it feels bad. but put it perspective, we've been here before. >> that's excellent perspective. i know you'll stick around. that announcement is in about 12 minutes. we'll get back to you then to discuss that one. thank you.
we want to turn now to a somber ceremony that took place this morning at dover air force base in delaware. the remains of 30 american troops, including navy s.e.a.l.s. were returned to loved ones. president obama was there with defense secretary leon panetta and admiral mike mull in. the event was closed to the media. some of the victims are seen here in the pictures. those who died were highly trained professionals. the missions shrouded in secrecy. it marked the single deadliest day in the war. their helicopter crashed in central afghanistan. the troops were traveling in a chinook helicopter like the one seen here in these pictures. also killed in the crash were seven afghan soldiers and a civilian interpreter. joining us now for much more on this story, pentagon correspondent barbara starr. barbara, what can you tell us about this ceremony that's taking place at dover today? >> reporter: randi, it will sadly go on we're told for
several hours because they have a number of transfer cases. that's what they call them. essentially caskets for the removal of the remains from the two c-17 aircraft that landed earlier today. 38 sets of remains will be taken off the planes in a somber ceremony in front of the president of the united states and the family members that have traveled to dover. we only have this photo of the president arriving. we're not allowed to be there and show any of the ceremony. the pentagon and the military also perhaps setting another precedent here. we are now being told it is entirely possible, even though we have photos. their families have come forward publicly of their own freewill. in many of the cases that the pentagon may decide not to publicly release the names of the 22 s.e.a.l.s. who were lost in this helicopter shootdown. because they belong to a covert unit, they may decide not to
name them. leon panetta is being asked by the navy special forces not to allow the names to officially come out for the protection of other members of the team. i think we can assume they believe by not naming anybody, they will protect the team members that went on the raid that killed osama bin laden. but this would be precedent-setting. no one here can remember, randi, another case of an american service member fallen in battle in action in wartime. this recent ten years of war that has not been publicly acknowledged by the pentagon. randi? >> that would be an interesting move. i want to ask you about the mission and about the crash. have you gotten more details on exactly what happened there? >> reporter: we have indeed. what we're now able to confirm is the helicopter with the 22 s.e.a.l.s. on board, the crew, the other special forces from the air force on board, the army crew, it was actually called in not even to do what the s.e.a.l.s. are normally trained
to do. normally, these guys go on highly dangerous covert counterterrorism missions, essentially assaulting, air a call the helicopter to go after very tough targets. very covertly. that isn't even what happened here. what we know is they were called in by rangers on the ground, army rangers who were in a firefight and saw some of the tal began they were fighting begin to escape. they called for backup help to try and cut off the escape of those taliban and it was the s.e.a.l.s. that were on tap to be the so-called backup force. they, of course, were ready to go on their helicopter. it's really sad. wasn't really the mission that they are routinely trained to do. randi? >> what about the chinook helicopters. we said they were in a ch-47 chinook. these are huge helicopters. they're not exactly stealth. are they basically sitting ducks in these for the enemy?
>> reporter: well, you know, to some extent, the helicopter missions in afghanistan are so dangerous all the time. we have flown in these at very high altitudes up in the mountains which is the scenario they were in here. the advantage of the chinook is it can go into these steep mountainous areas, fly at high altitude, they can carry a large number of troops and get them in, in one helicopter mission. that's the positive side. the negative perhaps, the challenge is they are big, slow lumbering, noisy. the taliban can see and hear them coming. they try and fly them at night. this time it just didn't work out. but it's not a helicopter that has any kind of stealth capability, if you will. >> certainly not. barbara starr, appreciate the update. thank you. >> reporter: sure. >> we want to talk about brion nichols. he flew chinook helicopters. he can be seen here on the far left in this photo.
when his son learned about his father's death, he couldn't understand why the navy s.e.a.l.s., who were also killed were getting so much media attention. so he sent us this photo in an eye report to cnn and this request. "my father was one of the 30 u.s. soldiers killed in afghanistan with the s.e.a.l.s. rescue mission. my father was the pilot of the chinook. i have seen other pictures of victims from this deadly mission and wish you would include a picture of my father. he is the farthest to the left." braden. thank you for sending the picture of your dad and we're so very sorry for your loss. here's a picture of him with his father. happier times. his aunt, sue keller, says braden was his father's only son and that they were very close. he was counting the days until his dad came home. in fact, there were just nine days left before he was to fly home to kansas city to his son for a two-week leave. black lawmakers are taking
matters into their own hands in the name of getting the unemployed back to work. their latest efforts to help thousands land a job, next. as we go to break, we want to show you a live look at the big board as we bait for the fed announcement. still up. positive territory. 83 points, now 87 points. back in a moment. it's not like i really had a choice. snack on this. progressive's "name your price" tool showed me a range of coverages and i picked the one that worked for me. i saved hundreds. wow, that's dinner and a movie. [ dramatic soundtrack plays ] this picture stars you and savings. but mostly savings. out there with a better way. now, that's progressive. the authentic, the rare, the hard to define. to those always searching for what's pure and what's real from we who believe we know just how you feel. haagen-dazs.
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16.8%. compare that to the jobless rate for white americans, which is down a little to 8.2%. in fact, the jobless rate for african-americans is higher than any other racial group. joining me on the phone is representative marcia fudge. she hosted the first congressional black caucus job fair in cleveland. first off, thank you for coming on the show. such an important topic to discuss here. you had quite a turnout at yesterday's job fair. about 4,000 people. how did that go? >> thank you first for having me. it went extremely well. certainly to have 4,000 people show up is great. but on the other hand, the problem is so severe that 4,000 people would show up. so i think that what we did was good. but it also shows the gravity of the problem in this country. >> you know, we've seen these job fairs. our reporters have been at the job fairs across the country. people are backing in. they're desperate for jobs.
when you have a thousand positions open, you get triple or quadruple the amount of applications. i know the job nars are going to florida, michigan, georgia, california. do you think this approach will help this time around? >> i think this job fair was very different. before any employers were loud to come to the job fair, they had to commit a certain number of jobs. so what we did was put employers and persons looking for jobs together knowing that these jobs were available. they just weren't out there taking resumes. we knew jobs were available. we had more than 2500 jobs on the table. and just today, one of the employers this morning, i saw at a meeting indicated that he had enough resumes and talked to enough people to fill the 50 positions he had available. someone else told us that they had hired a couple of engineers and a couple of forklift operators. so we put people together that we knew needed jobs with those
who had those skills. >> what do you hear from those who are looking for work? how desperate is the situation for many of them? >> you said the word. it's desperate. ny of them have been out of work for some time. it is difficult. in this kind of an economy to find work. based upon some of the things that have gone on in the last few months and weeks, it's going to get worse. we're going to lose more jobs than we're going to gain. so people really are desperate to feed their families and to pay their mortgages. it's a difficult time in this country. >> do you think it has to happen at the state level? i mean, how do we get there? we've been talking about this. we've been talking about job creation. we've heard the promises. how do we get there? >> we get there doing what the cbc just did. we stopped talking about it. we've taken it upon ourselves to do our part. if through these five cities that we go to over the next few weeks we get 10 touz,000 or 15,000 people hired, it may not
seem like a lot to people because of the huge problem we face with more than 15 million people out of work, but to those 15,000 people, we've made a difference. >> we talked about the jobless rate for the african-american population. what can be done specifically to help that group? >> i think two things need to really happen. we need to target communities of highest need. certainly, the majority of them may, in fact, be african-american. but all are not african-american. so we need to target those communities with special attention and programs and secondly, i think one of the things that needs to happen is that we need to, as a congress, pass a transportation and infrastructure bill so that we can put construction people back to work, we can take care of our crumbling roads and bridges. we can as well take care of our aging communities with more neighborhood stabilization programs that are going to help us rehab old homes or tear down one that is are bringing down the values in our neighborhoods.
>> right. >> there are a number of things that can be done. certainly we do understand how to do it. we just haven't done it. >> yeah. we need to get those jobless numbers moving in the other direction. representative marcia fudge from ohio. thank you. appreciate it. >> we're waiting to see how the fed is going to react to all the chaos on wall street. their big announcement any second now. before we go to break, though, one more look at the big board. dow still up 138 points. if you don't have an iphone, you don't have an ipod in your phone. with your music..
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. breaking news now as we take one more look at the markets. still up 114. we've been waiting for the fed to make a policy statement and christine romans is in new york. she has that statement in hand. christine, any word on it? >> reporter: the fed is not making any change to interest rates. we told you that they wouldn't because the rates are so low that they really can't move them. zero to a quarter percent interest rate, you can't really switch that. i just got the statement, by the way. they're going to keep a low monetary policy through at least the year 2013. here's what the statement says in the beginning. information received since the last meeting in june indicates
that economic growth so far this year is considerably slower than the committee expected. i told you that the first quarter barely had any growth in the first quarter. the second quarter, of course, was really tough as well. 1.3%. a couple of bright spots. i know, business investment to equipment and software continues to expand. my producers and i are scouring to find out if there's new policy tools that they are embarking on. i don't see any yet. but i told you that they might be able to do some things like change the duration of the securities that they hold. do things like reinvest some of their principal payments to be able to continue their existing policy of keeping interest rates low. they said, of course, they're going to continue to review that as necessary. stocks, though, as you can see, have given up a good 80 or 90 points here. what wall street is telling you is that they don't like the assessment of the economy and they don't see anything in here really to get them too excited about new things the fed can do to keep things going.
let me take a little more look at this. >> you take a look. i'll get to alison kosik at wall street right now. alison, what is the reaction there from the statement from the fed on policy? >> reporter: as christine said, the numbers show everything. the dow for the first time today dipping into the red now down 47 points. you know, wall street was kind of looking for the fed to really take the lead and say something to calm the markets, to maybe even be a white knight. you know what, that's not the fed's job when it comes down to it. even though wall street was really looking for that, especially after you know, stocks have really just taken a pounding over the past couple of weeks with the dow losing almost 1900 points in 11 sessions. clearly, wall street not hearing what it wanted to hear from the fed at this point with the dow now dropping 34 points. randi? >> alison, this is the first time we're in the red today certainly. we've had a positive market so far for the day. what do you think that investors did want to hear? you said they didn't hear what
they wanted to. what were they hoping to hear from the fed? >> reporter: talking to traders down there, they really wanted to hear some leadership. they wanted to hear something in this statement that had the appearance of the fed maybe getting control of the situation or a signal showing that the fed has some control over the mess that the economy is in to be quite frank. but you know, the feds' hands are tied on this. on the one hand, you know, you're seeing the disappointment in the market, that nothing clearly was said by the fed of any kind of stimulus measure. so you're seeing the disappointment there. but if the fed would have come out and hinted or announced a new stimulus measure, you could have seen a selloff for stocks because the fact of the matter is, it could have spooked investors into thinking, well, does the fed see something worse in the economy than we don't see? is this why they're introduce thg stimulus package? really, the fed was kind of a
catch-22 here with the fed really having its hands tied on what it really can do at this point. randi? >> all right, alison. thank you. let me get back to christine, romans. christine, i know you looked at the fed statement a little longer there. anything more to share with us? >> reporter: just quickly a downgrading essentially of the economic outlook and the economic forecast which is something we all feel every day, right? as i said, they expect -- the economy is growing slower than they had expected. also saying that inflation was picking up a little bit and also that the jobs market, they're not expecting a quick pickup in the jobs market. a slower pace of recovery overcoming quarters. they're expecting now. they don't think that the unemployment rate is going to go anything more than a gradual decline in the near term here. so they say -- this is sort of the money line. downside risks to the economic outlook have increased. also, the date. 2013. it's the first time i've heard them say, put an expiration date
on how long or a target date on how long they're going to keep interest rates so low at zero percent. they're going to continue to find all the ways they can to keep them at zero percent at least through, at least through mid-2013. that tells you they're thinking that the economy is going to remain here sluggish in the near term certainly. >> the dow went up to positive territory for a moment. now it's dipped back to negative territory. who does this impact the most, christine? >> reporter: i think it impacts the most -- wow. this is something closely watched by the big investors, by the big economists and strategists trying to figure out their assumptions for where the economy is going. and really, you know, i can make the argument that what the fed does affects efrl single one -- every single one of us. whether they're printing money by flooding the economy with more money, whether they're the ones who are going to step in, in the absence of any kind of cohesive plan in washington, it's the fed who really is sort of controlling the purse strings
here at this point. so what the fed does or doesn't do really affects everybody. >> do you think we would have seen a different reaction if they did flood us with cash? >> reporter: it's interesting because i think, alison and i are of the same mind, you have to be careful how, if they came out too strongly with some new policy tool, some people could say they're reacting to the stock market decline and get even more concerned. i think we're of the same mind, it's unclear how the market could react. they're still assessing it. this is just the stock market reaction. bond market, commodities markets, every other market, many of them bigger than the stock market, we'll be watching them to see how they interact. >> one word i've heard you say quite a bit the last few days is the word uncertainty, you and ali velshi. is this still a reflection of uncertainty at this point? >> reporter: it really is. it's a reflection of fragility too. the global situation right now is pretty fragile. it doesn't take much, as you can
see, to tip people into fear factor. that's where we are now. uncertainty, but bit same token, there's a fragility that makes everything that much more, i don't know, magnified in the market. that that's what makes it nerve racking. before we go, the biggest take away from this policy statement today? >> reporter: downgrading the economic assessment of where we are, things are somewhat weaker, somewhat softer than the fed thought. they're going to keep their foot on the pedal as they're driving the car. keep their foot on the gas, full on out until at least the year 2013, mid-2013, and we don't know what, if anything, they have left in their armory, but they say they'll keep rates going low and keep their foot on the pedal. >> all right. certainly the dow back in positive territory. up about 91 points right now. christine romans, appreciate it. thank you. are they the new bonnie and clyde and clyde? the fbi is in hot pursuit of a sister and her two brothers.
they're considered well-armed and very dangerous. we'll check it out along with you, next. the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c., martin luther king jr. memorial. take your seat at the table on august 28th.
now, it's about half past the hour. let's take a look at some of the headlines and other news you may have missed after rising 200 points, the dow quickly erased its gains today after the federal reserve released the policy statement. taking a look there right now. it's still up, 37 points. the fed says economic conditions require it to keep rates exceptionally low until 2013 and risks to the economy have increased, but investors were apparently hoping to hear much more. president obama was on hand as the american troops killed in
the deadliest day of the afghan war came home. 22 navy s.e.a.l.s. killed in a helicopter crash in afghanistan arrived at dover air force base in delaware this morning. the president, defense secretary leon panetta and joint chiefs of staff were there for the somber transfer ceremony along with the families of the fallen troops. the hunt continues for three siblings accused in a two-state crime spree. lee grace daugherty and her brothers dylan and brian in their 20s, seen here are wanted for robbery and attempted robbery. they robbed a bank in georgia with a rifle, then opened fire on a police car in florida. the officer wasn't hurt but authorities are worried all three siblings have criminal records. ronnie daugherty has 14 felony arrests since 2007 and recently was sentenced to probation for sending harmful information to a minor. it only took 30 minutes for a texas jury to decide the fate of warren jeffs after the half-hour deliberation, the
self-proclaimed prophet was sentenced to life in prison plus pay $10,000 fine. jeffs was found guilty on one count of aggravated sexual assault and another count of sexual assault, both involving underage girls. the sentence was the maximum possible. after nearly 29 hours in the water, ener, diana nyad abandoned her attempt to make history. she arrived in key west, florida, aboard a boat after asthma and shoulder pain forced her to call it quits halfway through the 103-mile swim from cuba to florida. nyad said she does not see herself attempting the big swim again. if you recall that ruckus over budget cuts and labor rights in wisconsin, if you recall the democratic lawmakers leaving the state, the bill they despised passing anyway, the protests, the sit-ins the court fights, you want to hear about the recall elections. a half dozen republican state senators are fighting for their jobs today, a whole lot sooner
than expected. cnn's ted rowlands is in madison. ted, let's talk about this. these are incumbent, their terms are not up, but they could be voted out just like that. explain for us. >> reporter: well, basically, this was promised back in february when we saw all of the thousands of folks come down to the state capitol. they were very frustrated saying we're going to try to recall the sitting lawmakers. basically, the process is simple. you gather enough signatures, then you can subject a sitting politician to a recall election, which is basically a do-over election in the middle of a term. that's what they've done. there are six republican senators. as you said, fight for their jobs today in districts across the state. people were eligible for recall. governor scott walker, the republican sitting governor is not eligible for recall. so he is not fighting for his job today. he'll be eligible after a year of service and, of course, democrats are vowing to do that. right now, there's a 19-14
majority in the senate here in wisconsin favoring republicans. democrats are hoping they can take the majority. they need a three-spot swing if you will. from this election and next week two democrats are facing the same thing. in the end, after next week, democrats say they hope they will have the majority in the senate and they think they have the votes to do so. this is what they promised they would do back in february and here we are. voters deciding the fate of these lawmakers today. >> it could turn things around in the senate. this isn't just -- certainly this story is wisconsin. but this isn't the only place. i mean, we see the same passions running throughout the country. >> reporter: yeah. this actually has very little to do with wisconsin in the grand scheme of things. this is the ongoing battle, the war between democrats and republicans and the center of it is unions. you recall the reason this started is the governor wanted to destabilize the public employee union by taking away
collective bargaining rights. that created a -- it brought in union money from across the country. $30 million has been spent on these recall elections. we're talking about little tiny towns in northern wisconsin where normally, you know, the candidate would go to the elks club to generate some votes. now, they've got full-on commercials and pamphlets because all of this money has come in here, and the reason is this. democrats need unions, not only for funding purposes but to get people out to vote. if the unions don't fight back in a big way, it will send a clear message to other states that are thinking about doing similar things that it's okay. that's what's really behind this is a message from the unions, do not do this in ohio and other states that are contemplating it. because you'll have this happen to you, which these lawmakers may have them happen in wisconsin. you may lose your job. that's what they're trying to
accomplish here. it's -- to some people it's a disgusting example of what's happening across the country in politics. so much money wasted for this inside politics advantage, if you will. >> to a lot of people, i'm sure. they see is at a waste of money. ted rowlands in madison. thank you. london burning. unbelievable damage from three days of rioting. live report from the frontlines right after this. we'll always cook dinner, and cheer for our favorite team. we'll still go to meetings, make home movies, and learn new things. but how we do all this, will never be the same.
you could call it the new battle for britain. gangs of young people slug tg out with riot police in london and other british cities. the destruction is unbelievable. buildings and homes set on fire, shops trashed. burned out cars. now one person killed. prime minister david cameron cut short his vacation in italy and called members of parliament back from summer break to deal with what he describes as what criminality.
cnn's dan rivers has more from the frontlines. >> reporter: as looting continued with impugn at this in london, for the first time british police used the armored trucks to clear roads in a number of areas. this was south london. this is who they were up against, gangs of masked criminals who had taken over the streets. so you can see the police are running down here in the center of the area to restraesh order. but it's a very, very scary atmosphere. there's huge gangs of kids on the streets. many of them -- you see there's a large amount of damage here as well. we're not going to hang around. get out of the way. caught in the middle, terrified young families trying to get home. this was peckham high street, normally choked with traffic, now overwhelmed with rioters who
looted dozens of shops. as night fell, the gangs became even more brazen. nose to nose with the police who were outnumbered. the situation is anarchy down here in the area. there is no sense of anyone intervening to stop this. perhaps the police feel intervening would make the situation worse or they haven't got the numbers. i'm not sure. this is a supermarket that's basically been completely emptied. we're going to have to move. things are being thrown. this was west london, cars left to burn in normally quiet leafy streets. here almost every shop had been smashed. the economic cost, as well as the social damage, clear to see. this shopping area remained lawless and volatile hours after the first windows were hit. and this bus was abandoned down
a side street after a gang smashed its windows, stormed aboard and set it a light. >> it was scary. it was scary. that's why i didn't want to talk about it. i was shocked. after throwing all the stones, bottles, everything in front of me, i was shocked. >> few of the gangs would talk, but this man who says he wasn't involved in the violence did agree to speak. >> people don't got no money. it's not one person, it's a group of people. that's how it goes when people got no money. people want money. >> reporter: but much of what's happened seems to be mindless vandalism. now everyone in the uk is wondering how and if the government can regain control of the streets. an amazing scene there. dan rivers joining us now from one of the hard hit areas in london. dan, what's it like where you are right now?
>> reporter: well, this is a town in east london on the other side of the city from where we were last night. give you a look around. there's lots of police. there has been a clash here earlier on, some bottles and bricks and stones thrown at buses and at the police. now, things are pretty quiet. you can see there's still people out in the streets, still a lot of police here. these police, for example, have been drafted in from waels. they've come to bolster the number of officers on the streets which is standing at about 16,000 police officers in london. 10,000 more than yesterday. they're hoping that by surging the police, if you like, this will really keep a lid on all this trouble. so far it's tense here, but it is quiet now. it's very quiet across the rest of london. we're being told in the kind of upscale areas like chelsea and kensington, it's eerily quiet.
people are just staying inside waiting to see what happens. >> do officials believe they're getting control over the situation? i'm just curious why they haven't put in place a curfew of some kind. >> reporter: well, that has been discussed here as has the use of rubber bullets, of rounds which have never been used on mainland britain before. that's not being ruled out. at the moment, though, they feel, i think, with sheer numbers, they can get a grip on this situation. but this is an incredibly difficult thing to police. it's so dynamic. these gangs appear out of nowhere, hitting buses or any signs of authority and then straight-away, here's some of our friends here, straight-away, then they melt away back into the streets and it's very difficult for the police to keep up with them. the police, you know, they've got vans and lots of equipment,
there are helicopters up in the sky. but these guys can weave around quickly. they know the streets here. this is the kind of thing being thrown at the police, these lumps of concrete. the floor here is littered with bits of brick and things that have been thrown at the police. there's broken glass all across the street here. you can see, it is still fairly tense. there are still people hanging around, still gangs of kids around. it's calm, but i wouldn't say that this is over by any means yet. >> i'm sure. i can see you looking over your shoulder there a few times. i certainly don't blame you. dan rivers, be safe. thank you. what if i told that you despite yesterday's market plunge, your 401(k) could be up from 2009. we'll explain that. in the meantime, look at the market right now. down negative territory. down 192 points. we'll talk more about your 401(k) after this.
yesterday was not a good day for wall street. but it wasn't as bad as you might think. christine romans joins us again to break down the numbers and look at who took the biggest beating. >> here's some perspective. investors lost a trillion dollars in stock value according to the wilshire 5,000. that's the broadest gauge of u.s. stocks. standard & poor's over economic concerns, the worries over the debt crisis in europe all this wall street in a vice grip yesterday. the dow jones industrial average as you know plunged a whopping 635 points yesterday. that makes it the sixth biggest point drop of all-time for blue chip stocks since the dow index was created in 1896. but the number of points really isn't as important anymore as the percentage drop. now, the dow lost 5.55% of its value yesterday. that's a lot. but it doesn't even rank in the top 20 for percentage drops historically. on black friday in 1987, black thursday, actually, in 1987, the dow lost 22% in one day.
now, still all the indexes took a pretty big beating yesterday. the s&p 500, the best indicator for what's in your 401(k), it lost about 6.5%. every stock in the s&p 500 ended lower. but financial stocks, wow, those were among the hardest hit. bank of america dropped a staggering 20%. citigroup and morgan stanley dropped at least 15% each. now, stocks are down overall, 15, 16, 17% in just a few weeks. but here's perspective. the s&p 500 is now up 64% from the lows in 2009. christine romans, cnn, new york. thank you, christine. like a kick in the gut, a good samaritan gets a pink slip instead of a reward. it is just unreal. you do not want to miss this next story. he's going to join us next right here in the cnn
all right. you are not going to believe this next story that we're about to tell you. a good samaritan who stopped his school bus to help police officers in trouble is now out of work. yes, you heard me. out of a job. it happened during a dangerous hailstorm in long island. this is a little of what it looked like there. the police, turns out, were trapped by flooding and the golf ball-sized hail. that's when george dau happened by. i really can't do the story justice without him. let's bring him in to tell us about it for himself. hi there, george. what happened in the hailstorm? can you take us back? >> sure. i mean, it was -- i've driven in every type of weather since i had the job. i've driven in hail before. i've driven in snowstorms.
but this was highly unusual. i picked up the child in queens, i go from queens, long island. i'm sorry. i go from long island into queens every day and i pick him up in queens and bring him back to long island. but in any event, on this particular day, i picked up the child and i turned around and i seen the storm was behind me. after i picked up the child, i knew i had to head that way. and it was -- i seen this out of the ordinary light display with lightning. i'm saying, you know, this is where i'm heading. it looked like night and day and i'm heading into night. it looked like, this is an extraordinary -- this is something like i've never been involved with before. >> but then you came across these police officers. so you rescued them. >> right. >> a lot of people probably thought that you should have received some kind of reward or at least a pat on the back for this. instead, you lost your job. tell us how that went down very
quickly. >> the thing is, yeah, i had to write up an incident report because i came back late due to the flooding and whatever else transpired. i got back about an hour and a half late, almost two hours late. and i had to do a write-up on the bus, what caused the damage, what transpired. also, i had to do a full report the following day. >> were you shocked when you lost your job? as a result of this? >> absolutely. again, this is something that when every american comes home and you turn on the news, this is what every american throughout the united states is doing anyway under the horrendous conditions that have happened around the united states with hurricanes and tornadoes and floods. i mean, you're seeing the community work with first responders getting the community back together and working together as a community. so for me to do anything other than any other american is -- that's what you're supposed to be doing. i didn't -- so friday came, i
had wrote up this incident report and it was done. to me, i forgot about it and i did my part like everybody else. >> and are you -- i do want to point out, george, that we did call the bus company that you worked for, tried to reach them several times. didn't get a return call back. we wanted to ask them why you lost your job. >> yeah. >> what was the explanation that you were given? >> well, see, the thing is, when people see the documentation, can you explain it -- it was because they felt that understandably, you cannot let a person under any circumstances on a school bus with children. i don't know who these people are and understandably nobody would. when people are telling you they're police officers and they're asking for your help and they're in this situation and they're telling you they got to get to the precinct. you're assuming that they're being called in because of this horrendous situation you're in with this bizarre storm. so you know, what do you do?
i did what i thought anybody would do anyway. it was no big deal. so when friday came and they told me, it was because they felt i endangered the welfare of a child. >> you did have one child on the bus? >> right. but even as a child, when you think of a child, you think of maybe a five-year-old or whatever. this is a 16-year-old child that has a slight speech impediment and i have an adult da that supervises the child and is with the child anyway. it's not a small child. he's not a fragile child. he's an -- actually, he's in a theater company somewhere in new york city. he goes back and forth in new york city on the weekends by himself. his parents let him. it's not like this is a small fragile child. >> we understand it was a tough situation. you had the child on the bus but then you had people's lives in danger. now you're out of work. we appreciate you coming on and sharing your story and do keep
us up to date if you do get another job. >> oh, absolutely. in the -- >> we have to leave it there, george. i'm sorry. >> all right. i appreciate it. thank you very much. >> thank you. we'll be right back after this. ♪ sometimes when we touch ha ha! millions of hits! [ male announcer ] flick, stack, and move between active apps seamlessly. only on the new hp touchpad with webos. it's the cleanest, clearest water. we find the best, sweetest crab for red lobster we can find. yeah! [ male announcer ] hurry in to crabfest at red lobster. the only time you can savor three sweet alaskan crab entrees all under $20, like our hearty crab and roasted garlic seafood bake or snow crab and crab butter shrimp.
[ jon ] i wouldn't put it on my table at home, i wouldn't bring it in. my name's jon forsythe, and i sea food differently. [ martin luther king jr. ] i still have a dream that one day on the red hills of georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. i have a dream today! [ male announcer ] chevrolet is honored to celebrate the unveiling of the washington, d.c., martin luther king jr. memorial. take your seat at the table on august 28th.